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Identify the main users of financial information and discuss their needs


Identify the main users of financial information and discuss their needs

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Answer #1

The main users of financial statements are

1. Company Management : They need to financial information to understand the position of company whether the company is in profit/loss, revenue growth, costing etc.,

2. Investors : They need to check how their investment is growing.

3. Lenders : They need to identify the company's liquidity and loan repayment capability

4. Customers : They need to know if the company they intend to deal with is financial stable.

5. Competitors : They need to know how their fellow competitor is performing in the market.

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